Jim Whitehurst is CEO and Chief Plumber at Red Hat

Jim Whitehurst, president and CEO of Red Hat, the oldest and by far the most successful company whose business is based purely around open source, makes no bones about it: “Selling free software is hard,” he says. In fact, he goes further: “Open source is not a business model; it's a way to develop software.”

On CIO.co.uk.

Philip Rosedale Gets a New Life in Second Life

Wow:

Linden Lab Chief Executive Philip Rosedale said on Friday the company he founded has begun a search for a new CEO with more operational and management expertise.

Rosedale will become chairman of the Linden Lab board when his successor is found, replacing Mitch Kapor, who will remain a board member and the company’s largest investor. Rosedale said he will also keep a full-time role at the company working on product development and strategy.

“This is my life’s work,” he told Reuters in an interview. “I’m not going anywhere, and I’m still full-time on this, probably for the rest of my life.”

Second Life’s growth has slowed after a period of rapid expansion. Rosedale’s replacement will face the difficult task of regaining that momentum, working within Linden Lab’s idiosyncratic corporate culture and winning over Second Life’s impassioned users.

Presumably it's the slower growth that has encouraged Rosedale to make this move in the hope that fresh blood can get things moving again.

So Farewell, Then, Matthew Szulik

The announcement that Red Hat's CEO and President, Matthew Szulik, is moving on (back?) to become its Chairman, is obviously pretty big news, since Szulik has led the company for nearly a decade, a long time in the still-young open source world. His valedictory message is well worth a read; I particularly liked the following section:

My early days at Red Hat were sitting in small office with no door in Durham, NC, across from the free soda machine. People by the hour would stop and punch their selection for Mountain Dew or Coke. My challenge was that I was tasked to go and raise venture money for this free software company. And over the phone, in the middle of my sales pitch, corporate types at Dell, IBM and HP and others would hear the constant banging of soda cans dropping in the soda machine and would ask if there were fights going on outside my office. So, after a while, I told the prospective investors that YES there were fights going on. And yes, these fights happened frequently. It’s how people at Red Hat settled technical issues likes software bugs and features in new releases. Red Hat was a real tough place to work. Dell, HP and IBM became investors because they liked the fighting spirit of Red Hat.

Says it all, really.

The (Open) Source of Red Hat's Success

Continuing his great series of interviews with key people in the world of business open source, Matt Asay (does this man never sleep?) talks to Matthew Szulik, CEO of Red Hat. I wrote a lot about Red Hat in the early days, but I've not followed it so closely recently (bad boy), so it was fascinating to get an update on what is arguably the most successful and most important open source company. In particular, I found this revealing:

In sum, our belief is that the best management is the peer process, just as in open source. If you measure up to your peers at Red Hat, you thrive. If you don't, you either change or self-select out. When you find people that can do things in an "honest way," without a mercenary view of their assignment, you win. A lot of people don't like this approach, and they leave.

In other words, the best way to run an open source company is to use the open source methodology. Imagine that.

Der CEO Spricht

I find Jonathan Schwartz's blog fascinating. Not so much for what it says - even though that is often, as here, thoughtful and well written, as for the fact that the CEO of a huge company that is being turned around in front of our eyes thinks that it is worth doing, and at such length.

My fascination sometimes feels of the kind provoked by watching enormously large structures head slowly but inexorably towards each other. Not that I want to be negative, you understand.